How To Ungate Your Amazon Account To Sell in Mexico
Amazon market coverage is increasingly growing, with more people interested in becoming third-party sellers on the platform.
Although it started primarily as a B2C marketplace, its inclusivity idea to allow other third parties and vendors to list their products on it has led to a tremendous expansion.
Today, people can find almost anything they need, from hard-to-find products to technical infrastructure services (Amazon Web Services, AWS) and entertainment.
The platform has also turned what was once seen as a complicated online shopping process into a straightforward and convenient shopping experience, regardless of location, language, or culture.
As the largest e-retailer in the world, Amazon has continued to spread its roots beyond the North American boundaries.
The company also strives to balance its shopping experience across all its regions of dominance through its unique features.
Its Prime feature, for instance, sets it apart from its competitors, combined with its simplified cost sheet and selling rules.
That means even aspiring Mexican sellers can benefit from Amazon Prime Mexico, just like the US sellers.
But how easy is it to join the Mexican version of Amazon? Are there specific rules involved? This article provides everything aspiring sellers should know before joining Amazon.com.mx.
Quick Facts About Amazon in Mexico
In a move to take over the e-commerce space, Amazon moved to Mexico in 2015 as an e-book retailer and has been the top choice for Mexican online shoppers.
Located in the Leon Bajio Industrial Park, the giant e-retailer has always opened its doors for small, medium, and established retailers to utilize its vast marketplace and reach millions of buyers.
Also, since Mexico is a fast-growing country, it offers a wide range of opportunities for new and established sellers to harness the power of Amazon and create their brands.
While there are many ways in which Amazon has impacted the general Mexican economy, here are some quick facts about Amazon in Mexico:
- Amazon.com.mx is the largest e-commerce site in Mexico, just after Mercado Libre, with approximately 63.76 million monthly visitors.
- Mexico is the third country in North America with the highest online shopping activities, after Brazil and Argentina.
- Since 2015, Amazon has invested about 52 billion pesos ($3.1 billion) in Mexico, which contributed to the creation of 800 direct jobs and 32,000 indirect jobs. It has also contributed about 57 million pesos ($3.4 million) to the country’s GDP.
- Amazon has about 7 fulfillment centers in Mexico, 3 centers being the largest in Latin America.
- By 2020, almost 51 million Mexicans were already using online shopping, and the number is expected to increase by 45% by 2024.
Getting Started with Amazon Seller Mexico
Whether you are a new reseller or you already have an Amazon account from another country, Amazon has streamlined its operations and registration process to allow aspiring sellers to join from anywhere.
However, before becoming an Amazon seller Mexico, it is vital to note that the platform has received numerous shipping complaints in Mexico, including lost items and shipping delays.
While the issues might have been effectively addressed, new sellers should understand that customer reviews and satisfaction are crucial for their success in the marketplace.
Therefore, even before opening their accounts and listing their products, here are the three factors that sellers should consider to establish their brands on Amazon Mexico.
Shipping Costs:
Shipping products to Amazon warehouses and finally delivering them to customers has always been a challenge to most sellers.
In the case of Mexico, most Mexican Amazon sellers will need to ship products such as electronics from the US before delivering them to customers.
For this reason, there are high chances of lost packages, package damages, and delayed shipping. To overcome the challenges, Mexican Amazon sellers are advised to use Fulfillment by Amazon, especially when selling high-demand products.
The option allows them to ship products from the US to Amazon storage warehouses or directly to customers.
Language Barrier:
Since almost 90% of Mexicans use the Spanish language, sellers may need to list their products in Spanish to get more customers.
Those using the US listings will need to translate them from English to Spanish, which is never 100% translation. Language barrier, therefore, is a major challenge that most Amazon sellers in Mexico face, which goes a long in impacting their customer service and confidence.
Mexican Transactional Culture:
Every country has its transactional culture that defines how sellers interact with buyers. The culture also defines how buyers prefer paying for goods and services.
For instance, while Amazon prefers banks, credit cards, and e-paying methods, Amazon Mexico may push sellers to adjust and adopt phone-based payment methods. Sellers who do not accept the phone-based method may record fewer customers in the end.
Can Amazon Seller Open Account in USA From Mexico?
To sell on Amazon Mexico, the giant e-retailer requires all sellers to create and verify their professional selling accounts following the set Mexican rules.
It also unifies the registration requirements by allowing aspiring sellers within North American countries to use a single account to sell their products.
So, can an Amazon seller open an account in the USA from Mexico?
The good news is that Amazon sellers do not have to worry about creating different accounts for each country within North America.
That is because to access all marketplaces, sellers need to have a North American Unified Account. The account allows them to:
- Share and manage their listing and inventory information across Amazon USA, Mexico, and Canada.
- Access vital tools and services to manage their online businesses.
- Manage track of orders on multiple North American sales channels in Manage Orders or with combined Order Reports.
- Update account information using a consolidated user interface.
- Get paid through local banks in local currencies.
- Pay one monthly Professional selling plan subscription fee.
How to Create an Amazon Seller Account in Mexico
North American Unified Accounts are available to American, Mexican, and Canadian sellers with active selling accounts. Although the account is registered automatically when signing up, sellers may also be required to check and apply if they are not automatically approved.
They can use these four steps to get approved:
- Go to the Amazon Seller Central dashboard and check their account health to ensure it is good. If their account health is good, they can request approval through Amazon Seller Support. The step also applies to sellers who registered their brands before applying for unified accounts.
- Update their inventory using the product’s global SKUs to meet Amazon’s global requirements.
- Use the Build International Listing tool to create FBM listings and select their preferred source marketplace.
- Check the automatic currency conversion adjustments done by Amazon on their pricing and shipping.
Conversely, for Mexico-based Amazon sellers who are new to the platform, they are required to sign up for Amazon Seller Accounts before they can get approved for North American Unified Accounts. The registration process is the same across all North American marketplaces, although each country has its specific documentation and verification processes.
For Mexico-based accounts, sellers are required to provide the following documents:
- Interbank Clave Bancaria Estandarizada (CLABE), also called standardized banking cipher or standardized bank code.
- Email and phone number to receive verification code.
- Credit or debit card. A monthly fee of MXN 600 is charged automatically on the card once the 12-month free trial period is over.
- Company information, including name, address, name of the natural account holder, and the public name to appear on the Amazon store.
- Scanned copies of Voter Identification Number (INE), passport, or driver’s license.
- Tax ID Number or Registro Federal de Contribuyentes (RFC) of the company or natural person.
- An entire file of proof of tax situation (SAT).
- Maximum of three months’ bank statement with valid address.
- Proof of address from a fixed service such as telephone, water, internet, or electricity bill.
Amazon Seller Central Mexico
Once sellers are registered and approved to sell on Amazon.com.mx, they are welcomed to Amazon Seller Central Mexico. Seller Central is a portal that provides sellers with all the tools they need to customize their accounts, manage inventory, track all daily activities, and scale their businesses on the platform. As a single workshop, Amazon Seller Central also allows sellers to access more information about product listing requirements, shipping and fulfillment, customer interaction, account health, transactions, and many more.
How To Use Seller Central Amazon Mexico
As a global online retailer, Amazon makes it easy for any registered seller to access and use Seller Central from anywhere. That means sellers from Mexico or within North America can use Seller Central Amazon Mexico to restructure their businesses through:
- Tracking their inventory and updating their listings from the Inventory tab.
- Check their account performance using customer metrics tools.
- Track all their daily sales, returns, and refunds on products sold.
- Download custom business reports and frequently used templates.
- Contact the Amazon Seller Support team and open help tickets.
Amazon Prime Mexico
Launched in 2017, Amazon Prime Mexico became the first Latin American Prime launch and recorded the highest eligible selection on the first day.
The service, which came in less than two years after Amazon started its full operations in Mexico, offers unlimited free shipping on over 2o million items across various categories.
It also started with a subscription fee of 449 pesos ($23) for the first year before increasing to a standard of 889 pesos ($46) the following year.
Unlike in other countries where Amazon launched its Prime feature with fast and free shipping only, it launched both Prime shipping and Prime Video in Mexico on the same day.
That means, besides enjoying free 1-day shipping on select products within Mexico City, Guadalajara, Puebla, and Queretaro, and same-day delivery in the Mexico City metro area, customers can also watch hundreds of popular movies and TV shows. These include the original Mexican series Mozart in the Jungle, which features the Mexican actor Gael Garcia Bernal.
Key Features of Mexico Amazon Prime
#1 Amazon Prime Video in Mexico
Amazon Prime Video came as the biggest rival for Netflix, which commands almost 1.2 million subscribers in Mexico. However, unlike Netflix which allows its subscribers to use VPN to watch US Netflix from Mexico, Amazon Prime Video does not allow its subscribers to watch Amazon Prime US in Mexico.
Moreover, the Mexican version of Amazon Prime Video is not fully featured like the US version. That means Mexicans can only enjoy selected movies and TV shows.
#2 Amazon Prime Delivery
- Free deliveries on weekends.
- Free unlimited shipping on products sent from Amazon Mexico.
- Free shipping from the US with deliveries between 3 and 7 business days.
- No minimum purchases.
#3 Amazon Prime Music
Over 100 million Prime songs from Mexico and all over the world.
#4 Amazon Prime Reading
Prime Reading allows access to the Kindle Store where subscribers can read or download e-books written in Spanish and English.
What Are Amazon Restricted Or Gated Categories in Mexico?
Amazon gated or restricted categories are those with strict selling rules that no seller is allowed to sell freely. These categories, brands, and ASINs have specific approval guidelines, and any seller who meets the standards can enjoy a vast market with less competition.
That means Amazon only has the power to draw the rules and open gates for more sellers to access the categories. The good news, however, is that Amazon does not always restrict the entire category, like in the previous gating practices.
Instead, it gates subcategories, leaving some products open, even though they might be under gated categories. This explains why there is a short list of gated categories and a long list of restricted products or subcategories.
Generally, any seller who wants to sell within a gated category must apply through Amazon.com.mx to get approved.
Also, enlisting the services of third-party ungating companies is another way on how to get ungated in Mexico.
To get a broader picture of ungating categories and brands, here is a big guide to read.
Why Does Amazon Gate Its Categories?
Most multi-million investments are built on trust, customer satisfaction, and a healthy working environment, and Amazon is no exception. Being a huge marketplace with millions of users globally, Amazon strives to maintain a good relationship with both buyers and sellers by ensuring only high-quality products are in circulation.
It achieves this by gating some categories, brands, and ASINs. Therefore, among others, here are the main reasons why Amazon gates its categories:
To Be Able To Monitor Product Standards
One of the first missions of Amazon Mexico is to ensure buyers are offered both high-quality and safe products. It does this by allowing only sellers whose products have undergone stringent quality assessment steps to access highly-demanded categories.
Since the platform is home to millions of brands and buyers, there are high chances of buyers getting counterfeit products.
Hence, it is Amazon’s responsibility to block such products by setting up strict selling rules. That is why ungating service for Mexico requires sellers to show authorization and necessary documentation from agencies that oversee all safety standards concerning ingredients or raw materials, packaging, product labeling, and expiry dates.
For the Protection of Every Brand’s Reputation
Amazon also works jointly with big brands to ensure that only authorized resellers can list products from certain brands.
Therefore, to protect the brand’s reputation, Amazon asks sellers to provide legit documentation from these brands to show they are allowed to list their products.
Resellers who do not provide proof of authorization are locked out of certain categories. Many large and well-known brands require pre-approval with them directly, before even applying to Amazon.
This is true for both seasoned sellers, and individuals new to the platform.
To Enhance Customer Satisfaction
Besides ensuring buyers can get high-quality products, Amazon also restricts some categories to prevent sellers from exploiting buyers. That means only sellers with a positive track record can access the categories and reach buyers.
This enhances customer satisfaction and a positive rating. The company may also limit or dictate maximum pricing to ensure buyers are not being fleeced.
Adherence to FDA and COFEPRIS Regulations
Many items require the approval of the Food and Drug Administration (FDA) and Federal Committee for Protection from Sanitary Risks (in Spanish, Comision Federal para la Proteccion contra Riesgos Sanitarios COFEPRIS) to sell in the Mexican marketplace.
No retail platform, website, or other selling venue is permitted to offer any product that is not previously rubber-stamped by the FDA and COFEPRIS. The obvious reason for this is safety because specific laws exist to ensure that end users are not harmed.
Further, items from foreign countries may not be permitted, as they do not meet standard codes from other regulatory bodies.
Categories And Products That Require Amazon Approval in Mexico
As stated earlier, Amazon has a long list of gated products and a short list of restricted categories. That is because one category can have more subcategories, which can add up to tens of products.
Therefore, when applying for approval, sellers need to consider three ungating levels; category, brand, and product ungating. They should also differentiate between category and product unlocking.
General Guidelines to Get Ungated on Amazon Mexico
Whether you are a new reseller or an established FBA seller, utilizing the vast market space offered by Amazon.com.mx should never be a challenge again.
Two of the most common questions new sellers seek answers to are; can you do Amazon FBA from Mexico? And is FBA profitable in Mexico?
The answer to both is yes. You can create an account, get ungated, scale your business, and enjoy the benefits that come with Fulfillment by Amazon such as storage spaces, returns, and world-class customer service. Amazon’s mission is to see its users grow, and thus, increase sales and profitability. And this does not matter if you are listing your products in a locked or unrestricted category.
As a result, if you want to expand your selling portfolio by accessing restricted categories, here are the general guidelines to get ungated on Amazon:
Sign Up for A Professional Amazon Seller Account
Professional Amazon Seller Account is the backbone of any seller as it records all the activities conducted by the seller on the platform. It is through this account that Amazon can tell your business position and determine whether you meet all the quality standards or not.
Analyze And Verify Your Account Health
Creating a professional Seller Account is not enough. You still need to maintain its health to maximize your chances of getting approved. Maintaining a healthy account includes meeting your customers’ expectations and adhering to Amazon’s business code. That means you should have a timely shipping record, good customer relations, competitive pricing, and avoid violating Amazon’s policies. To check your account health, go to the Account Health section on the Seller Central Account and click on the Performance menu.
Check Specific Category Ungating Guidelines
Each category has specific ungating instructions, and you need to check them before requesting approval. Some categories are complicated, while others have simple instructions that even new sellers can unlock easily. For example, some categories like CA Grocery & Gourmet ungating service may require sellers to have at least three years of selling experience and running websites.
Choose A Reputable Supplier
Getting a reliable supplier is also a vital step, especially as your demand curve grows. Amazon will also ask you to provide legitimate invoices from trusted suppliers whose products fall under gated categories. After choosing a supplier, you need to place at least three orders, with each order having at least ten pieces of the restricted product. Retailers are not considered suppliers. You cannot go down to your local store and purchase a bunch of items for resale. The products need to come from verified wholesalers and distributors.
Prepare All Documents
Before submitting your approval request, you need to prepare your documents, which include recent purchase invoices from reputable wholesalers. These scanned copies of individual invoices should have all the ASINs written next to the product name. Price and other confidential information should be locked for wholesaler privacy.
Request Approval
With all the documents and other requirements ready, you can proceed to request approval from Amazon.
Final Thoughts on Ungating Service for Mexico
Getting ungated and selling on Amazon Mexico is a straightforward process, especially after understanding how the approval process works, getting all the documents, and using the best Amazon ungating service.
However, as a Spanish-speaking country, selling in Mexico comes with its set of challenges, including language barrier, transactional culture, and high costs of international shipping. Therefore, before deciding whether it is worthwhile expanding your business to the Mexican market, you should first research the market, know what you intend to sell, and how to set it.
